GDP is computed by adding up the market values of all final goods and services produced within a country in a given period of time. This includes all goods and services produced in the country, regardless of the nationality of the producer or where the goods are sold. Intermediate goods, such as goods used in the production of other goods, are not included in GDP calculations to avoid double counting.

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How Is GDP Computed

Question 9

Multiple Choice

How is GDP computed?

A) Add up the quantities of all final goods and services.
B) Add up the cost of producing final goods and services.
C) Use weights determined by a survey regarding how much people value different sorts of goods and services to compute GDP as a weighted average.
D) Add up the market values of all final goods and services produced within a country in a given period of time.

Correct Answer: